AGF has launched a fixed income ETF that uses a multi-factor approach to select securities.
AGFiQ Enhanced Core Global Multi-Sector Bond ETF uses proprietary factor and risk models to rank global bonds using factors such as growth, value, quality and risk characteristics, says a release. It’s the first ETF in Canada to use a multi-factor approach to select fixed income securities, the firm says.
“While fixed income investing has its roots in mathematics, we are excited to be the first in Canada to apply quantitative factor models to the asset class, focused on better understanding and managing of risk as we seek out opportunities for total return and income across the global bond market,” says Kevin McCreadie, AGF’s president and CIO, in the release.
With the ETF, investors get exposure to a diversified portfolio of investment-grade and high-yield corporate bonds, and government bonds from developed and emerging markets. Foreign currency exposure is expected to be hedged back to Canadian dollars, which reflects an update to the investment strategy, says the release.
The ETF has a management fee of 0.45% and begins trading today on Aequitas NEO.